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Highlands Today

Money In Your Pocket, Or To Schools And Cities?

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By Gary Pinnell | Highlands Today

Published: January 18, 2008

SEBRING — Whether Floridians will vote for a tax cut won't be known until Jan. 29, but four local government officials are against it.

"The tax reform doesn't fix the problem," said Guy Maxcy, a Highlands County commissioner. It doesn't correctly modify the taxing system, Maxcy said.

The county would lose $5.5 million, according to an estimate provided by Highlands County Property Appraiser Raymond McIntyre. That doesn't count the effect of portability, which would allow homeowners to move the Save Our Homes cap. Save Our Homes is a constitutional mandate that a taxing entity cannot raise the taxable value of the home by more than 3 percent each year.

He estimated the average homeowner could save $230 annually in property taxes. But taxing authorities could raise the millage to offset any tax cut created by the Jan. 29 vote, McIntyre said.

Maxcy listened to House Speaker Marco Rubio on Wednesday at the Kenilworth Lodge, and was convinced that the state Legislature will attempt to cut municipal, county and school taxes again in 2008. Rubio was pushing for an initiative petition that will lower property taxes to a maximum of 1.35 percent.

"I want a single whammy for our county, not a double whammy," Maxcy said. The county will lose $4.7 million due to the doubling of the $25,000 homestead exemption to $50,000, and it will lose another $811,000 to a $25,000 personal property exemption to businesses, farms and mobile home owners, McIntyre estimated.

Lake Placid Mayor Tom Katsanis would lose about $44,000.

"It's not a lot of money," said Katsanis.

"But we have such a skimpy budget, we're just down to the bare as it is," Katsanis said. "If we lose a couple of employees, we can absorb it. Maybe one employee, and we cut the supplies we order."

Avon Park city councilor Joe Wright is voting against the tax cut too.

"Out of principle. I don't like the state government dictating to local governments," Wright said. "There are aspects to it I do like, like Save Our Homes portability."

Avon Park Deputy Mayor George Hall was also unqualified in his opinion.

"This is not a good fix," he said. "I'm going to vote against it."

This may be the right tax reduction for people living on the coasts, and portability will help people who want to move inland.

"But I don't see where it's going to benefit us," Hall said.

Avon Park will adjust its budget if the constitutional amendment passes, Hall said. The city will be helped by new developments on the north side of town, like Wal-Mart.

"But with that growth comes more services we have to provide: garbage pick-up, fire, police protection," Hall said. "We're not any farther ahead."

McIntyre warned that the tax base will flatten out this year, because the value of homes and vacant lots has been falling in 2006 and 2007, and will continue the downward trend. That, too, will give cities, counties and schools less tax money.

The problem with exemptions for seniors, disabled people and homesteads is that they create inequities, McIntyre said. The Jan. 29 amendment, if it gets the 60 percent majority it needs to pass, will only exacerbate the problem, because it sets a new 10 percent cap for personal property taxes.

"In 2020, the new businesses are going to have a much higher tax liability, and they're going to have to compete with the ones who have been there for a long time," McIntyre said.

Only McIntyre didn't want to reveal how he's going to vote.

"I don't think it's my job to advise people," the property appraiser said. He preferred to stay neutral on the issue.

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